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EUR/USD up around 1.3270 on China

FXstreet.com (Edinburgh) -The shared currency is extending its ascent on Tuesday, lifting the EUR/USD to the area of 1.3270 on upbeat tone from the Chinese economy.

EUR/USD eyes on 1.3300

China continues to be the main driver for the risk appetite trends in the first half of the week, after Industrial Production, Retail Sales and Urban Investment figures all surpassed expectations during August, giving extra oxygen to the risk-associated assets in general. In the opinion of Westpac Global Strategy Group, “The 55, 100 and 200 day moving averages have converged in the 1.3140-90 range, with the runup to 1.34 an increasingly distant memory. ECB president Draghi’s mood last week was gloomier than expected, adding to our bias to sell into the 1.32-1.33 region. However, US data has been too soft to inspire much fresh USD buying, leaving 1.3100 intact for now”.

EUR/USD key levels

At the moment the pair is gaining 0.09% at 1.3268 with the next resistance at 1.3279 (Kijun Line) ahead of 1.3298 (low Aug.22) and then 1.3322 (low Aug.27). On the downside, a break below 1.3157 (low Sep.9) would target 1.3104 (50% of 1.2755-1.3453) en route to 1.3089 (low Jul.19).

Will lack of data flow Tuesday allow “risk-on” trade to continue unabated?

Strategists are citing the old saying that an object in motion will remain in motion – in this case the object is the general “risk-on” trade that has been in place since about 8/8.
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AUD/USD spiked on 0.9288 after solid China data but soon rebounded.

The AUD/USD was trading at 0.9280 before the release of China data, but after Chinese data released at better than expected levels, the pair gained instantly almost 8 pips.
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